Should you sell your Nanalysis stock?

Leede Financial analyst Douglas Loe said in a Nov. 25 update that Nanalysis Scientific (Nanalysis Scientific Stock Quote, Chart, News, Analysts, Financials TSXV:NSCI) posted another soft quarter in FQ3 2025, marked by weak benchtop NMR capital sales and continued underperformance in services gross margin.

He maintained a “Speculative Buy” rating but cut his target to $0.50 from $0.90.

Calgary-based Nanalysis manufactures compact NMR and MRI instruments and operates a security-services division tied largely to its CATSA contract.

Loe said consolidated Q3 revenue was $9.3-million with EBITDA of –$0.2-million, essentially in line with the prior quarter but below year-earlier results. Operating cash flow was –$0.4-million, and long-term debt rose to $17-million.

He said the core issue remains “soft NMR capital sales,” $2.7-million in the quarter, well below prior peaks, and a services gross margin of 12.5%, still far from the 30–40% range he views as necessary for the business to scale.

Geographically, Canadian revenue was $7-million, almost entirely services; U.S. sales were steady at $1.7-million; and Europe fell sharply to $0.3-million after several stronger quarters last year.

Loe said management expects improvement in FQ4, noting that Nanalysis has historically delivered stronger year-end capital equipment results.

“FH1/26 will be key to re-establishing EBITDA momentum,” he said, adding that his model continues to assume higher service margins over time through cost controls and operational efficiencies.

He also pointed to softness across the broader analytical-equipment sector, citing recent commentary from peer Oxford Instruments, whose imaging and analysis division has seen order disruption and margin compression.

Loe’s valuation remains based on his FY2027 Adjusted EBITDA and fully diluted EPS forecasts ($11.5-million and $0.036 per share). He expects Nanalysis to generate $41.3-million in revenue and $0.2-million in EBITDA in fiscal 2025, improving to $43-million in revenue and $6.1-million in EBITDA in fiscal 2026.

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